Ray Dalio gets the rebound right but trades it wrong
Rough year for Bridgewater
Bloomberg today writes about Bridgewater and note that its Pure Alpha II fund is down 18.6% year-to-date after a flat year last year.
The story details internal turmoil at the firm managing $148 billion. They also highlight a issue that every trader has faced; getting the strategy right and the execution wrong:
This year's inability to turn big ideas into big returns may be the last straw for some investors after nearly a decade of low-single-digit gains coupled with high fees.The problem, according to those with inside knowledge who asked not to be identified without permission to speak publicly about the firm, is that Bridgewater cut risk in March as the market crashed and was slow to ramp up again -- even as the Federal Reserve unleashed an unprecedented support effort. So even though it correctly touted trades such as going long equities, buying gold and betting on the yen against the dollar, it failed to benefit from its own foresight.